Question iPhone 12

[Buly]

That's why it is called "free market". I use 4 tiny 90 milligram injections a year. Each costs $28K. I don't have to buy them ?

 

[VTPete]

You folks springing for a $1300 phone would be embarrassed if you knew what it costs Apple to make one. My son is a licensed customs broker in the import-export business. A few years back, he was involved in the importation of a bunch of the then-latest iPhones (I don't remember the exact model). The import duty valuation (which must be documented) was in the single-digit dollars range! Yep, the iPhone they were selling at the time for hundreds of dollars cost Apple less than a 10-spot. Yikes!!!

TJ, I think there's a bit more to it than that. These deals setup with offshore contract mfg's like Foxconn are often complicated, ie. Foxconn builds the phone and actually sells the finished goods to Apple I'm betting in Ireland where they're based. This type of arrangement can enable ways of reducing import taxes and duties etc in a clever ways. It's also part of why Apple pays very low corp taxes. We allow them to game the system. Also, there's been pretty good write ups on apple's cost of goods, that have not been disputed. Check this one out: The Cost of Making an iPhone

 

[TJ&LadyDi]

That's why it is called "free market". I use 4 tiny 90 milligram injections a year. Each costs $28K. I don't have to buy them ?

Yep...that's the great think about a "free market;" we are "free" to buy or not buy. As for $1,600 cell phones, I guess that's why it is called "disposable income." We are free to dispose of it in any way we choose.

TJ

 

[VTPete]

I just did another order run through with Apple and they give $250 for the iPhone X.

You can still order now and get it Nov 13th. That is very odd as by now usually these things are in 4-6 week delay.

Okay, changing from 512 down to lower storage options now shows 7-10 business days where the 512 still locks to Nov 13th.

I checked 3rd party trade in values and saw about 250-300. I was amazed ATT was at 700. We'll see if they make the delivery date. I hope I'm happy with the 256GB but had to draw the line SOMEWHERE!

 

[Neal]

As a business owner long ago selling CD-ROM's with my software for $9.95 + shipping. I'd get the comment about I can buy a CD at Walmart for $.99.

That CD needs artwork. There is a cost for creating and applying the artwork
That CD needs to have data written to it, whether done in house or 3rd party for mass production (as I did) costs money.
Those CD's need to be shipped
There is labor involved
The business needs to pay the bills for the utilities
The business needs to pay the employees

How much does that CD cost now?

Same with an iPhone. It's not just the cost of the hardware, they are also probably paying royalties for patents involved. They pay their employees a lot of money, there are a lot of things involved that go into the price that we often forget about or have no idea about.

The real reason - PEOPLE WILL PAY IT!

My dilemma this time around is my iPhone X is still like new, it's perfect in many ways EXCEPT the camera and doesn't have the advanced cellular (5G etc) and WiFi 6. I would be fine with my iPhone 6S. But I want to create memories with my dog, future endeavors in the works, and I want the best camera to record this and that is the iPhone 12 PRO MAX.

 

[Neal]

I checked 3rd party trade in values and saw about 250-300. I was amazed ATT was at 700. We'll see if they make the delivery date. I hope I'm happy with the 256GB but had to draw the line SOMEWHERE!

256 is fine. 128 is fine. I'm getting back into flying and all of that map data on the phone is my concern so I went with the largest. I also did this strategically assuming its demand would be lower so I would get it sooner.

 

[Neal]

I checked 3rd party trade in values and saw about 250-300. I was amazed ATT was at 700. We'll see if they make the delivery date. I hope I'm happy with the 256GB but had to draw the line SOMEWHERE!

I'll be curious to see what you end up getting. Hopefully you're aware of the terms as I just checked the AT&T web site. I personally buy the phone outright and don't do installments.

UP TO $700 OFF APPLE SMARTPHONES

Get up to $700 off an eligible smartphone when you add a new line or upgrade an existing line.

Limited time offer. Available in select locations.

You’ll need to:

• Purchase an eligible smartphone on a qualifying installment agreement, including taxes on full retail price (up front) and $30 activation/upgrade fee.
• Add a new line of service or upgrade an existing line.
• Activate postpaid unlimited wireless service (min. $75/mo. for new unlimited customers before discounts). AT&T may temporarily slow data speeds if the network is busy.
• Trade-in an eligible Smartphone in good working condition with a minimum trade-in value of $95 for $700 credit ($35 for $350 credit) within 30 days of activation.

Then you’ll get:

• Up to $700 in bill credits with smartphone trade-in value of $95 or higher (Up to $350 with trade-in value of $35 to $94) applied in equal amounts over 30 monthly installments

Important notes:

• Credits start within 3 bills after trade-in is completed and will be applied over 30 months. You will receive catch-up credits once bill credits start. Credit will not exceed the lower of the device cost or the max credit amount as defined above. Other installment options may be available and credit will be applied in equal amounts over the term of the installment.
• If you cancel wireless service, your credits will end and you’ll owe the balance of up to $1400 based on device purchased.
• For new lines, if you cancel service on any other line on your account within 90 days of activating the line under this offer, device credits will stop.
• Credit card may be req’d (except MA, PA, ND.)

 

[VTPete]

I'll be curious to see what you end up getting. Hopefully you're aware of the terms as I just checked the AT&T web site. I personally buy the phone outright and don't do installments.

It's good you point out the credit scheme for those reading the trail. Thank you.
I prefer the installments.. been doing it since iphone X, keeps it under the wife's expense limit lol.... If i spent 1400 outright she'd be headed for the jewelry store immediately.
I'm tied to ATT for a long time for a variety of reasons so am fine with it. They're paying me 400 essentially to stay locked in-I can take that deal. .
Lastly, it's just a comms expense for my LLC.

 

[Neal]

If i spent 1400 outright she'd be headed for the jewelry store immediately

Make sure she knows they don't do installments on jewelry!

 

[Joe Hogan]

Looking forward to the Iphone 12 as well